Just one month into the second quarter of 2013, it already looks as if home sellers are feeling more confident with current and potential housing market conditions.
General sentiment of those individuals looking to sell their property has recently doubled quarter-over-quarter, according to Redfin's latest Real-Time Seller Survey. The number of homeowners who believe now is a good time to sell jumped from 15 percent in the final three months of 2012, to 22 percent in the first three months of this year - leading the index to presently show a reading of 45 percent. Around 44 percent of sellers reportedly also believe now is a good time to buy, as new, existing and foreclosed houses offer considerable deals.
Representatives for the real estate information provider said that this is the first time home sellers have been more positive about the market, in regards to selling rather than for buying, since the organization began conducting this survey in the third quarter of last year. Additionally, nearly one-third of current sellers noted no major concerns about selling, which is an improvement from just 19 percent in the first quarter.
"We are seeing more and more folks who bought before the bubble burst who are above water and listing their homes," said Chad Dierickx, an agent for Redfin. "When sellers see their neighbors' homes selling quickly and for prices they never would have imagined a couple of years ago when foreclosed properties and short sales were dragging down home values, they can't help but be optimistic about the market. I expect that this optimism will only continue to increase."
Better times may still be ahead
In addition to the heightened opinions home sellers presently being observed, Redfin announced 85 percent of sellers believe that public property records will show a rise in home prices within the next 12 months. This figure represents an improvement of 4 percent, as 81 percent of respondents felt similarly in the first three months of 2013. A reported 52 percent of those surveyed said they are currently planning to sell their property.
Recovery is ongoing, but headwinds may hamper progress
In a recent release, the National Association of Home Builders detailed improvements seen in the past several months, and suggested further gains could be seen, but warned that rising material costs may be deterring construction professionals and financial regulations at the government level may hinder fast, forward movement.
However, the organization estimated 672,000 single-family housing starts could be recorded by the end of 2013 - marking an increase of 23 percent from the 534,000 units built last year.